♪ imus in the morning >> well, the holiday weekend is over and your money is ready to go to work. good morning, everyone, i'm charles payne, stuart is to be back tomorrow, but the story today we could have a rally when the markets open. and this week see what's pushing stocks higher, corporate earnings or ben bernanke. and forget friday's report, we have stunning numbers on how many americans are working part-time and how many numbers are working two jobs or more

and we're keeping an eye on the chaos in egypt. a deadly protest and the military gets 20% of its funding from you and me the american taxpayer. buckle up, "varney & company" is about to begin. we route your order to up to 75 market centers to look for the best possible price -- maybe ev better than you expected. it's all part of our goal to execute your trade in one second. i'm derrick chan of fidelity investments. our one-second trade execution is one more innovative reason serious investors are choosing fidelity. now get 200 free trades when you open an account.

>> more chaos in cairo. at least 40 people are dead and hundreds injured after clashes between supporters of former president mohammed morsi and the military. protesters said they were trying to storm the military building. we're going to have a lot more for you later in the hour. aaother story that we're following today, the latest on the boeing 777 crash in san francisco. the n.t.s.b. investigating whether or not pilot error had anything to do with it. data records showed a warning before the crash. tom will join us at the top of

the hour. the obama administration is assessing the honor system, when people say they're-- they will not be able to verify they're employed and asking the government to subsidize health care. it's interesting, go to the hoft say listen, my company doesn't help me out, i need a check. >> we reported on wednesday this was going to happen when the obama administration waived the employer mandate tax for a year. now the employer is going to essentially say, you know what? we're not going to provide affordable coverage and maybe those workers end up on the exchanges and now the government bare he had in the register, the honor system for one year and we will not be checking whether or not your employer could have given you affordable insurance. charles: maybe a little bit, we'll see. and we're calling it part-time earthquake m, because only 47% of americans have full-time jobs.

is this a new normal under president obama? is that and the opening bell after this.

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>> we're paying homage to despicable me 2, which broke a box office record. an astonishing 142 million. nearly triple what "the lone ranger" made. and bring in larry levin at the cme. we're about to kick off earnings season. you know, corporations promised in last earning season that the last half would be good. how important is this round of earnings? >> pretty important. a couple of reasons. if you want to see the markets go higher, earnings can help you do it. you look at the economic situation, data employment numbers like that. it doesn't seem that the fed is involved. if the earnings come out good, i think the market can tick its way up and maybe see new highs so i think it's real important to see what they're looking for and i think there's a good chance that's going to happen. >> i think that's the story of

last week, come into this week. and tapering began in september and 20 to 30 billion dollars and that's the kind of news the market couldn't stomach a month ago, but feels like maybe wall street is ready to accept that as long as earnings can hold up their part of the equation. >> and they've done a good job getting into position. if we see that, i think a lot of people will step up buying this market on the highs because it's going to run up quick when that happens and people will step in and buy the highs, we've seen it before and new highs are in play when we get the new earnings. >> listen, opening bell is ringing and we start the day up 33 points. we're bringing in the big board. and alcoa reports after the bell, take a look at this chart as we talk about this, because alcoa has been moving in the exact opposite direction as the rest of the market. you know, if i was a manager of a baseball team and alcoa was

my lead off hitter i would have sat it on the bench. >> it's so true. what's interesting about alcoa, the aluminum maker, we've been in business news and for so long, we always say alcoa sets the tone for earnings season. and now what? at this point, the last few quarters, it really has not. and this chart really is evidence of that because you see that alcoa down 10%, the market up 20% in 52 weeks, so, it's good to know and maybe set the tone for materials or economic related or dollar related, but less so for the general market. >> well, it does kick off earnings season so hopefully this time they'll meet very low expectations. warren buffett is buying up more than half a million shares of the dialysis provider. this stock purchase takes buffett's ownership, the shares are up about 2%.

i want to get back to nicole though, disney, the lone ranger was a flop and looks worse. at disney, shares? up 3/4 of 1% and johnny depp and the lone ranger sounds cool ultimately brought in 50 million and despicable me, but it paled in comparison not a good showing for lone ranger and disney. >> thank you, nicole, we'll be back later. perhaps put away the pompons after the jobs report on friday. if you dig in deeper, you find that only 47% of americans are working full-time. joining us now is david kotok from cumberland advisors. people are working part-time and they doesn't want to but they are.

and 7 million people holding multiple jobs and another million people a quarter of a million discouraged workers. beneath the surface, those are alarming trends. >> absolutely. the part-time job growth at the expense of full-time job growth is a very, very cutting edge issue here. are we developing in the united states a 30-hour week threshold because of obama care? are we doing something in the u.s. the way the french did with the 35-hour work week in which case, we're creating a major shift in employment. we have about 3 1/2 percentage points more part-time workers than the normal baseline of the business cycles. that's 5 million people or so who say, i'm looking for a full-time job and i can't find it. can they not find it because the employer won't offer it? we're seeing evident of that

now more and more. >> you know, there was a time, i guess, years ago, traditionally you come out of deep recession, a lot of job loss and you would see high part-time jobs and then those part-time jobs would be sort of segued into full-time jobs and that's not happening this time around and to your point a lot of people point to obama care. is there something else going on, sort of a new paradigm because of the rules and regulations and penalties, maybe this is it and businesses think the only way to compete is to keep them at part-time? >> well, it seems to be the case, we see that among our clients and those are anecdotes, but we see a number of them and we also see something else. if you look at the job creation numbers in the last employment report. those jobs were in the service sector, and they were in the lower wage levels. the multipliers are larger in manufacturing, in distribution and those job creation numbers were very weak. some of them were actually

negative. and so, i don't want to disparage work. i think any job should be respected and anyone who works should be praised, but we are using an employment number off of a category that's softer and to base policy, federal reserve policy, paper erring to cheer about the employment report because of these numbers i think is an overreach. >> i've got to tell you, a job is a job and people are happy. but leisure hospitality and retail over half of the full-time jobs. we'll talk to you soon. >> thank you. charles: our next guest says it's time to buy into utilities. and the big contrarians this morning. ed, everyone is fleeing utilities. anything that looks like a bond, anything that is big deal, everyone says stay away from that stuff?

>> yeah, but i think they're wrong, charles. there's a herd mentality on wall street and when one makes a move, including think of mutual funds as they sell out of this, and others start to sell off. when you start to see selling, then you see more selling and you peel back the layers here, utilities are very strong. you see at the same time, you can see them increase the dividends. they sold off when the ten year treasury had a rapid rise and people started to move out of utilities. you can pick up 4, 4 1/2% utilities almost across the board and i think you're looking at a nice total return over the next 52 weeks. including in that, not just the treasuries going higher, but what obama had on the war on coal. and cost more to supply the facilities with control and i think there's a reason to buy them.

>> here is a part, you know, listen. kind of counter intuitive. you have knowledge that they'll make less money. and i make the investments because i want that 4 or 5% yield. i buy the utility at $25 a share and it goes down to 20 and does that negate the dividends that i'm looking for. >> it definitely does, i think a lot of that selling has taken shape. you have to separate the market between the regulated and unregulated. you'll see your utility bills go up based on what obama said last week, or week and a half ago about the war on coal and climate change. that's an inflationary pressure -pthat everyone is going to fee around the country. especially those who get their energy from goal. natural gas prices are projected to go up 42%. so everything about that climate change speech that he gave from georgetown university is inflationary. you're going to see your costs

go up and see the stock prices probably rise from this point forward. charles: ed, the big contrarian, butowsky. i like the color theme this morning, your tie. and the key to obama care, is this the beginning of the end of the president's crowning achievement. and today we have a doctor who sued to stop the lawment is he ready to take a victory lap or what else does he have up his sleeve? right now the seven early movers for the morning. sin zynga, we know over the weekend, that the guy a that came from microsoft. in 2010 he had a meeting and they would have made more than 3.45, some people think that's a positive. so i tag those upgraded to a buy over at goldman sachs and goldman says 93. and barrick gold, i think he likes that, too.

and since july of 1992, a lot of people piling in on this on an oversold scheme. and this one a farming construction play, maybe counter intuitive contrarian, but making a big move. novemb november noveo vaccines, a flu viruses, bird avian flu viruses, protects animals. canadian solar, i talked about it all the time. another contract out of north carolina and could be a big deal between the eu and china and those solar plays. and finally, man, i think i wrote price line, yeah, priceline, overweight at morgan stanley, the target, guys, $1010. you know $1,000 targets have been scary these days, you

don't want to be a company with $1,000 target. it's up 3%. check the big board, almost as scheduled. this whole thing was doing pretty well. 15,203 for the dow. the situation in egypt continues to deteriorate. at least 42 people were killed overnight and the muslim brotherhood calling for citizens to rise up. we're going to bring you the latest after this. (announcer) at scottrade, our clients tradand invest exactly how they want. with scottrade's online banking, i get one view of my bank and brokerage accounts with one login... to easily move my money when i need to.

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>> all right. let's check on the big board. getting a little bit more traction at 73 points. not a bad way to start the day, it's going to be a long day.

it's time for your morning gold report. 17.90. and dell one of the big winners early in trading. a leading shareholder advisory, recommending that investors take the company private. 2, 2 1/2 points. and let's take a look at intel. not the same kind of news there. actually was downgraded this morning, down 2 1/2%. 23.50. the egyptian supporters of mohamed morsi clashed in cairo leaving 40 dead and hundreds injured. and just, we want to talk about the idea that 20% of the egyptian military budget comes from the united states. are we funding this? are we funding this coup right now? >> well, you know, we have to put this in perspective, charles. the egyptian people rose up against a dictatorship in 2011. and the brotherhood came to

power. the only democratic thing they did was the election and then put to rest democracy. morsi dissolved the lower parliament. put in place an islamist constitution that did away with minority rights, rights for women and christians and others. so basically, and then the economy tanked. there are so many parameters of democracy we did not see. for a year on this program, multiple times we've talked about defunding them when the brotherhood was running. but we have a white house that says they're not going to monitor. they don't care what party it is, communist, socialist, islamist. this, charles, was a course correction because 30 million egyptians rose in the street and said that the brotherhood was abandoning democracy and that with a was not democracy. we have to hold the military to account in the next months.

and there's a report what's going on in egypt what you're saying is right. the people there do not want islamist rules and basically sharia rule overseeing their date daily lives. the question is our aid to the egyptian government. most of it does go to the military and the military ov oversees the suez canal. do you think there will be a pullback on u.s. aid when the military needs it? >> and a lot of people know it's not the right time. there are signs in the street saying we were funding hamas in iran and all of this through egypt's brotherhood. now that they finally abandoned the brotherhood, it's not the right time to do it. i would push senator leahy and others calling for this

redaction in money to say, wait a minute, where were you in the last year when we were calling for pressure on the egyptian administration to abandon the islamist rule that the people did know the want, and the senator leahies of the world were quiet and now it seems like he's backing the brotherhood which is completely wrong. >> let's look forward now and let's talk about what's lying ahead of us. because the monday morning football quarterbacking stuff we always do. and coming across the ap moments ago, the top muslim cleric has gone into seclusion and warned of civil war. are we talking about the possibility of a full pledged civil war in egypt? >> i don't think so yet. there are tens of thousands that say the constant mo is is cutting teeth on dictator ship by stoking violence and becoming victims and martyrs. the military needs to not give them that room.

i was against the fact that they detained over 300 brotherhood leaders and gives them the mantle of victimization. most of the people on the street said, fine, give them the political space, but we don't want them running our government anymore and that's what we need to be hearing from the obama administration, it's time to finally have an ideological litmus test and who we support openly and publicly, but not hopefully lead them back to the mubarak era that we are seeing a few signs of. charles: absolutely we don't want to see the show tiles, but to your point. appreciate it. >> let's call it maximum pain, spending cuts hitting the heart of military families. you're going to find out what they're cutting next, it breaks your heart. it reminds when i was growing up as a kid after this. ♪

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>> we have an update from egypt. we have reports of at least 51 dead from clashes today. remember, we said 1.3 billion in u.s. taxpayer money in egypt

every single year and a lot is diverted to the military and it's forcing our military bases to close their swimming pools and many members of active duty families use the pool in the summertime. i think this is another example of the administration trying to install maximum pain, really make people feel it so they're against the sequester, but it's got to back fire. >> it's going to back fire, only 2.3 million a year spent on swimming pools for the military and most of that money goes towards lifeguards. so you could have actually a volunteer soldier instead and be the liefeguard for the swimming pool. and we know that the justice department has fraud -- waste and abuse. and soldiers will go off base for entertainment lining drink ing and--

>> i grew up on army bases and the first team i climbed the tallest diving board and jumped off and one of those lifeguards saved my life. >> were you doing cannon balls. >> it was fun until i started drowning. it's a swimming pool, military bases not like it's in the back yard. that's the social hub of the base. it's hot around the country and the president points that out. give us a swimming pool. >> give us a swimming pool. it's almost therapeutic and great for the soldiers. >> it's great for you. >> hey, big new hour of "varney & company" and we're coming ahead. now, we're talking about the plane crash in san francisco so a pilot is going to talk about what he thinks happened in the crucial final seconds and we said the irs scandal won't go away. and one said it could go much, much deeper than targeting conservative groups. when we made our commitment to the gulf, bp had two big goals:

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here why you should by now. ♪ ♪ charles: we saw the latest on the plane crash in san francisco. inexperience and plain error could be to blame. he had less than 50 hours of experience flying that jet in the first place. we have a pilot joining us now. >> the initial reaction i am getting is the pilot community just goes crazy. they will not give you straight answers until they get their

investigation done. they were obviously low because they did a tail strike. that was due to ice crystals. that is probably not the case. then you get into a dual bird strike into the hudson. >> do you think that it was pilot error? >> i do not want to say pilot error. you rule out all of these things that otherwise could have happened. you come down to the question of they were definitely low. why were they that low? there is a golf course along the san francisco bay. this plane was at 200 feet when

it went by cypress point. you should be at 800 feet. charles: back to the idea that the pilot made some serious mistakes. >> either they did not realize, they were not watching their instruments, there is a lot of talk about the glide slope and all of that being turned off. charles: let's talk about that. >> there are two points to instrument landing. there is a line that is the glide slope. it is no big deal.

it was widely clear and visual. >> the pilot did not know how to do and controls -- >> of course they knew how. you should easily be able to hand flight that airplane or any airplane. this airport stands out like a sore thumb. you cannot miss the thing. there was no fog. you can paint your own glide slope on the instrument. charles: i ever not sure if it was part of public relations. the public wants to know now. anyone boarding a plane would like some clarity. >> they eliminated the engine problem. now they are talking about the fact that crews need to work

together. the culture in korea was you never ever question your superior. they taught them, no, you really need to say, hey, you are going to slow. charles: perhaps the pilot was making big mistakes. >> why did you not say something? you are the training pilot sitting next to him. >> they will have to reevaluate how you tie down those seats. charles: thanks a lot. let's check on the big board.

off 122 points. not a lot of fanfare. how is it doing? nicole: right now it is up about 3% at the moment. priceline moved today. the latest earnings, they have been doing well. their outlook was stable. it looks like so far they are, you know, doing well. they are growing in a stable way. charles: william shatner was on a tight rope.

thanks a lot, nicole. the scandal of the irs does not and with the tea party. audit powers and leaking of personal information for political purposes. has it now become a political organization? >> what did acting irs commissioner tell congress? >> -- >> i am not sure that the iris did that. that would be such a no-no.

that puts a chill on donors to nonprofits. there is a lot of unfairness. charles: a nonprofit group can spend no more than 40% of their time and money on campaigns. we are getting a whole lot of buzz in montana. thank you for spending some time with us on this. this is pretty egregious stuff.

>> he was kind of doing a house to house search. at a minimum, you are at least seeing democratic doubletalk. they campaign against dark money. the governor himself railed against these corporate entities. here is former governor top appointee can't top adviser to running ofofit groups out of a po box. what has been most striking to folks is really the silence. maybe someone ought to check in

on his post office box. [ laughter ] charles: the florida governor is not a shrinking violet. he lets you know his opinion. he always felt like someone was at least straight up with you. it is unclear to the extent of how much he was involved or not involved. it was run by one of his top advisers. also with ties to a law firm down in louisiana. he may very well be in violation of the law for what he did at the time. you mentioned the u.s. senate

race in 2014. democrats need ryan sweitzer. i think if you are ryan sweitzer , you have this story, you have other stories out there. plus a democratic polling firm. they had a pullout. i have enjoyed having him on my program. even that publicly policy impulsion old -- >> this group that david asman uncovered, we do not know yet what it was spending money on. it is tied to the organization. >> exactly.

remember, he was head of the democratic governors association of the time. they lost some key races back a few years ago. i am sure that some democrats may want to know how that money was spent as well. charles: i am sure there will be a whole lot of vehicle was coming on this thing. it just does not look right. i think you better step up to the plate real soon. we appreciate you taking time for us. i want to get back to nicole. take a look at united healthcare group. nicole: it has completely rolled out. it noted that united healthcare could rise 40% over the next two

years. obviously, it will do better and they are better. i should note all the healthcare stocks do have up aeros. i quickly did a 20 year chart. it looked like an all-time high. charles: the president delays a key provision of obamacare for a year. [ male announcer] surprise -- you're having triplets. [ babies crying ]

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♪ charles: andy murray is the winner. he becomes the first british champion since 1936. it was amazing to watch. >> it is amazing.

charles: it was wonderful. it looked like he had three championship points. i was afraid. really afraid for the guy. time for me to see if i can make you a little bit of money. it has not necessarily a politically correct name, but, hey, they named their own company. the last time they reported, they beat the street by 50%. consequently, they called it a strong buy. a wonderful looking chart. i like this one a lot. my next guest is a doctor. what is the next step?

>> we felt like we had a strong push on obamacare. i am the only physician and employer that sued over the issue. it violates the fifth amendment of the constitution. the government has three weeks to reply to our lawsuit.

depending upon the ruling of the judge, we will repeal it to the fifth circuit. that is where the federal government does not want us to end up. there will be a panel of three judges. the issue of employer mandates was not taken up in the last case. charles: it is interesting. you walk us through the steps. >> it will be appealed one way or another. if we win, the federal government will appeal it in the fifth circuit. frankly, we do not care. we just want to get to the fifth circuit. it is a matter of strategy.

we will not end up having a trial in the federal district court. charles: give us a timeline. >> it may take a year. it will happen before 2015. it has to. this whole issue has to be settled. this is a revenue raising bill. you have to have revenue raising bills. there are two main points. remember, i am the only doctor that has come out and sued the federal government on this issue. i have a health practice in houston that focuses on more natural approaches to health. we want to address the

underlining problems. charles: a lot of people thank you. you are right. thank you a lot. we appreciate it. we will have you back on again to talk about it. >> thank you, charles. charles: surprise, it turns out not to be the case. after the break, the judge weighs in on the president hush-hush move. ♪ friday night, buddy.

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charles: the dow is a triple digits. speaking of new starts, eliot spitzer call he is going to run for new york city's comptroller.

he stepped down in 2008 after he was involved in a prostitution scandal. this time around he is hopeful that there will be for goodness. >> do we want somebody that was so tainted by scandal? he just wants to argue just to win a point even if he is wrong. there are so many problems with the way he has ran things. he has not been the most reputable, honest person. charles: which one had the most egregious action? the judge is on set. [ laughter ] >> spitzer's actions were against the law.

charles: all right. does the public care about that? i do not know. >> how they behave in office is key. charles: your point was exemplified. they are not very good communicators. >> i do not think that the former governor will be as happy as the former congressman has been with the polls. charles: anthony weidner has done pretty well so far in the polls. >> yes, hes. at these town hall meetings, he is arguably the most knowledgeable about the government and problems of the

city of new york. charles: he is a great politician. all rise. here he is. judge andrew napolitano. why? >> the reason why is because the laws, the freedom of information act, the laws are entirely different than the laws that govern the cia. about two years ago when the congress was on spring break in the president was in brazil, he announced he would facilitate the bombing of libya. did the military do it?

no. fast forward to this. the cia is closed with a certain amount of secrecy. we know more about the cia that we do the federal reserve. the freedom information act largely does not apply to the cia in the way it does to the military. we're not talking about where the troops are going tomorrow. charles: why would they want to hide the raid on osama bin laden? this is crazy to be. you probably do not get

reelected. >> the country rejoiced. it was radically different from the final version that they gave us. perhaps they do not want something to come out which would contradict that. charles: it is all negative speculation. >> my friends in the intelligence community laughed. the cia does not waste and asset .

they can only do it if a court will undo it or pressure on the president will undo it. i do not expect that to happen. charles: absolutely amazing. it is an amazing achievement. >> i think most americans probably agree with you. charles: after the break we have a guest that says it is time to buy gold right now. after this. ♪

charles: the jobs report showed 195 jobs were added in june. we should be adding over 300,000 jobs a month. we certainly cannot count on fiscal policy. stimulus is still a dirty word. >> the list comes from the same individual. spending is a problem. the deficit is a serious problem. >> it seems like this and even

with the delay, what we are getting is an acknowledgment that there are problems. something is wrong. even he admits we should be doing 300,000 jobs a month at this point. the main point here, delaying the employer mandate. admitting we should be doing the hundred thousand jobs. that may be a sense in the right direction. you cannot keep blaming this on republicans. >> he does not acknowledge the affect of the health reform on the economy. charles: just one of those guys. spend, spend, spend. let's get back to the cove. a bunch of stocks hitting new highs today. nicole: many names continue to

hit all-time highs. breaking through even their own new records that they continue to set. just to give you some perspective here, how about names like texas roadhouse. up 30, 40, 50, 60%. noodles, that is the newest one. it went from $18 to $52 weeks. charles: one thing is for sure, we all have to eat. everything you are hearing about gold is wrong. we will hear why gold is still a great investment. a lot of people have abandoned

gold. you are saying that they are wrong. >> that is right. i am. first of all, that is a clear sign of time to buy. there has been a complete configuration in the market. that is what we have seen. today i think we are at or near the low. whether or not we are at the low does not matter for those that are buying gold for a longer term portfolio balancing purpose. if you are looking to you, five or ten years down the road, this is a great time to buy. charles: what sent this down? at some point, there was all out panic to your point. what triggered the pullback in

gold in the first place? >> first of all, the table was set by january because of persistent discussion about whether or not the gold bull market ended and also growing concern about whether or not the fed would begin to ramp down qe3. beginning in january, we saw a draft of prices down until mid april of about $100. then in mid april, the first big 200-point drop occurred in the wake of rumor, one rumor that cyprus would begin selling some of its gold to deal with it financial crisis. a much more important rumor which was untrue. under european banks, we will do the same thing. charles: for the longest time,

it was pretty simple. central banks printing money that gigantic amount of inflation. the only safety that you had is gold. >> i think a lot of people feel like absolutely. at some point this massive amount of physical support all over the world is going to begin to lift inflation rates. we are hearing more central bankers, that is their intent. it is threading a needle to be able to control monetary policy

to get a little bit of inflation and not to get a lot. charles: japan says we want inflation. the ecb getting into the act as well. what should people watching expect? >> i am an advocate for physical metal. they were designed to get in and out of the market quickly. those are short-term traders.

those people have either gained very well or they have taken a beating. charles: you like physical gold. we will be coming back to you on this. we will bring you back real soon. thanks a lot. a liberal environmentalist college comes out in support of fracking.

♪ charles: gas prices holding steady overnight. $3.47. it is what we are calling the new normal. the crisis in egypt escalates. shares are up slightly today. the company announced it will release its new search. a big weekend at the box office. "despicable me 2" crushed "the lone ranger."

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services. huge record backlog right now. i think we will see the stock make the next leg up. i think we can get up to 31. keep an eye on it. a college in vermont is supporting a controversial pipeline that would carry frat natural gas through vermont. it is the state of new york. you know, i do not think you are very happy about what is happening here with what used to be an ally on you with environmentalist issues. >> we are hoping that they start to listen more to the students that attend college and take tuition there, as well as the citizens in that community.

there is obviously concerned about the environment. they do carry risks when it comes to land and water. this is definitely a step backwards. >> why would it have to be a step backwards? why wanted it be a more natural transition? it would seem like a logical next step towards the world that you see in the future. >> americans know that all types of energy take risks. the problem with natural gas is that there are still so many unknown questions about the risks towards water. it comes to the fact gas. charles: there has been forms of

frack gas for decades. if you were worried about this, you could have voiced it ten, 20, 30 years ago. you cannot point to any real examples. it has been a constant economic onset. >> that is not true at all. we do a lot of work with ranchers and farmers. there are risks to farmland. the chemicals that they are using are the big? a trained carrying 73 tankers.

it has killed at least five people. this will surely spark a real debate on oil. you brought up the keystone pipeline being shipped by train, rather than pipeline. >> that is not true. if you look at the expert analysis, they will tell you that either real or pipeline is safer. >> jane, hang on one second. i want to give you the data points. the railroad says three times more accidents by rail thin by pipeline. the department reporting that 33 times more spells versus pipelines. they are also reporting more spells by rail or truck in pipeline. >> first of all, you do not

understand the analysis that they are using. they are comparing all analysis. >> no. this is just oil spill. >> that is incorrect. i know the data. it was paid for by transcanada. charles: jane -- >> it is written by eight -- charles: i do have to say, at some point, though, it seems like your organization will have to figure out ways to help people. people need energy. people need jobs. >> absolutely agree. we have solutions for clean and local energy.

>> thank you very much. we appreciate it. charles: the stock took a pretty big hit. here is a bigger question. does this mark the end of innovation? have they peaked? ♪

♪ charles: smart phones seem to be hitting a wall in the united states. mark spooner when does right now. the thrill is gone. >> when you think about smart phone innovation, what changes from one generation to the next. a lot of it is the software. i think to a certain degree, we put samsung at the top.

they are out innovating the competition. the market is getting saturated. it seems like all of the movement is happening overseas where samsung and apple need to compete. charles: is there something that can happen? >> i am excited about the iphone five as. apple will integrate a fingerprint sensor. how many times do we look at our phone per day.

what if it actually recognize your fingerprint to unlock it. we hate putting in our passwords to download an app. charles: thanks a lot. appreciate it, buddy. more "varney & company" next. ♪ we route your order to up to 75 market centers to look for the best possible price -- maybe even better than you expected. it's all part of our goal to execute your trade in one second. i'm derrick chan of fidelity investments. our one-second trade execution is one more innovative reason serious investors are choosing fidelity. now get 200 free trades when you open an account.

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if your breathing suddenly worsens, your throat or tongue swells, you get hives, vision changes or eye pain, or problems passing urine. other side effects include dry mouth and constipation. nothing can reverse copd. spiriva helps me breathe better. does breathing with copd weigh you down? don't wait to ask your doctor about spiriva. ♪ charles: well, thank you, liz, you're great the last couple weeks. you held up well. liz: so did you. with the oil debate? there has to be a middle ground, and she said it's safer to do it via rail or truck, and respectfully, i disagree. charles: i think a lot will. what we don't disagree on is the market, coming out strong, and we're going to hand the show off to the best guy in the business. connell: oh, wow, i didn't know you knew it was me. appreciate that. the investigation of the plane

crash in san fransisco now focuses on the crew and the aircraft. we will have the very latest on what happened just before the plane clined the end of the runway and crashed. the deadly train derailment in quebec, explosions fueled by the oil, taking five lives. we'll get into that side of it, and we have a crisis in egypt, developments there with 50 dead after more clashes erupted in cairo. reunited, our friend charlie and the former sheriff of wall street, elliot spitzer, got together this morning. spitter, in case you have not heard, is running for public office again. we have that and more planned as well on this hour of "markets now." ♪ dagen: top of the morning to you. connell: reunited to yo